Choosing a Lender
Choosing a lender is a very important decision. The mortgage market is very competitive and ever changing. In addition, every borrower may have circumstances that are unique, and one lender may be better for your circumstances than another.
I strongly recommend shopping for loans and lenders. When the market is competitive the cost difference in loans can be relatively small. Other times it can vary quite a bit. Depending on your finances, credit and the type and condition of property some lenders may have better programs for you than others. In addition one lender could be better for fixed rate loans while another might be better for an adjustable or construction loan, and so on. See my article on Loan Shopping for the right questions to ask.
When I work with a client I usually give them a choice of 2-4 lenders to compare. Clients may have someone they worked with before, or have recommendations from a friend. That is always good and provides more choices to compare. The point is to take the time to do so. In addition to shopping for the best rates and terms, it is also very important that you know the lender can deliver on time the loan you want. Also, is the mortgage professional the right match for you? Do they communicate well, do you feel comfortable with them? You are going to pay them to help you, so be sure you are getting the right person for you.
Comparison shopping offers you the opportunity without obligation to get the best match for you.
When I recommend mortgage professionals, I do not accept referral fees of any kind. I only refer to people in whom I have strong confidence and usually years of experience. I work with people who do what they say they are going to do and offer competitive products. If they fail to be honest and professional then they will no longer be recommended. The advantage to a client working with recommended lenders is the confidence the job will be done; and because of the prospect of future referrals, these lenders will go the extra mile to make my clients happy.
While lending has become an almost national market and there are lenders everywhere on the internet, there are often local issues that lenders who have experience in the local market know how to deal with. This can include issues that come up with country properties as one example. An internet lender from out of state may have difficulty getting a loan underwritten without additional documentation for issues that are unusual which can delay your loan and in some cases cause a deal to fall apart because time frames cannot be met. While this can happen with any lender, I have found that working with the best local people who have the experience of hundred of loans serves my clients the best.
As a real estate broker, it does not matter to me which lender a client wants to work with as long as the person can do the best job for the client. That is why I refer to people who do just that.
In the mortgage section of my web page some of my recommended lenders have contributed articles, feel free to contact them. Or contact me for a list of lenders.